Europe

The autumn issuance window is wide open in equity capital markets this week, with stability allowing numerous sizeable equity financings.

Credit investors have built up close to all-time record long positions in iTraxx indices, with the approaching September roll increasing reluctance to hedge against a potential move wider despite near historically low volatility.

Buwog, the Austro-German residential property company, added to the recent reemergence of convertible bond issuance on Tuesday, with the sale of a €300m deal, while the Belgian real estate investment trust Cofinimmo also came to market with a €230m deal to buy back bonds due in 2018.

A trio of public sector borrowers are set to spray the short end of the dollar curve with deals on Wednesday, including one making its first visit in over two years, as markets priced in an ever decreasing chance of a rate rise at the next US Federal Open Market Committee meeting later this month.

Sanofi entered the European corporate bond market for the second time in a year on Tuesday, using its favoured triple tranche format and printing short dated notes with a negative yield.

US agricultural equipment manufacturer AGCO launched its first ever Schuldschein for €150m on Tuesday. Some of the proceeds will be used for the acquisition of Danish manufacturer Cimbria.

Renault Credit International Banque, the finance subsidiary of Renault, on Tuesday printed a €750m deal in a euro market buzzing with more than €5bn of new bonds.

Bayer and Monsanto have moved a step closer to agreeing a multi-billion dollar merger as Bayer confirmed that the two are in advanced discussions. A takeover would include the largest loan of the year of about $65bn.

Glencore, the Anglo-Swiss commodity trading and mining company, returned to the euro corporate bond market on Tuesday for its first issue since its secondary spreads widened dramatically almost a year ago.

FMS Wertmanagement’s Jens Remmers is taking on a new position within the German agency’s group, becoming treasurer of Depfa Bank.

Takeaway.com, the Dutch fast food delivery company, is pressing ahead with its IPO on the Amsterdam stock exchange, having filed an intention to float document on Tuesday morning.

The covered bond market was in good shape on Tuesday but it was in good shape this time last year too. With core covered bond valuations still out of sync with other asset classes, bankers warn that the market has become complacent and another correction is due.